Answer the following questions. 1. DeCesare Computers makes 5,900 units of a circuit board, CB76 at a cost of $260 each. Variable cost per unit is $220 and xed cost per unit is $40. Peach Electronics offers to supply 5,900 units of C876 for $240. If DeCesare buys from Peach it will be able to save $10 per unit in xed costs but continue to incur the remaining $30 per unit. Should DeCesare accept Peach's offer? Explain. 2. AP Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: @ (Click the icon to view the information.) AP Manufacturing uses straightline depreciation. Ignore the time value of money and income taxes. Should AP Manufacturing replace the old machine? Explain. higher than the cost to continue to produce. 2. AP Manufacturing is deciding whether to keep or replace an old machine. AP Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should AP Manufacturing replace the old machine? Explain. Begin by calculating the total relevant costs. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.) Keep Replace Difference : Total relevant costs m Data table Old Machine Original cost $ 10,300 Useful life 10 years Current age 6 years Remaining useful life 4 years Accumulated depreciation $ 6,180 Book value $ 4,120 Current disposal value (in cash) $ 2,900 Terminal disposal value (4 years from now) $ 0 Annual cash operating costs $ 20,000 $ $ New Machine 8,000 4 years 0 years 4 years Not acquired yet Not acquired yet Not acquired yet 0 14,000 1. DeCesare Computers makes 5,900 units of a circuit board. CBTS at a cost of $260 each. Variable cost per unit is $220 and xed cost per unit is $40. Peach Electronics offers to supply 5,900 units of C376 for $240. If DeCesare buys from Peach it will be able to save $10 per unit in xed costs but continue to incur the remaining $30 per unit. Should DeCesare accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If an input field is not used in the table, leave the input eld empty; do not enter a zero.) Make Buy Relevant costs: Variable costs per unit $ 220 Avoidable fixed costs per unit 10 $ 240 Purchase price per unit Purchase price per unit w Unit relevant cost g # DeCesare Computers should reject Peach's offer. When comparing relevant costs between the choices, Peach's offer price is higher than the cost to continue to produce. 2. AP Manufacturing is deciding whether to keep or replace an old machine. AP Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should AP Manufacturing replace the old machine? Explain. Begin by calculating the total relevant costs. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.)